China Sets Record in Broadband Equipment Market with First Billion-Dollar PON Quarter

  • IHS
CAMPBELL, CA — Global broadband aggregation equipment revenue (DSL, PON, and Ethernet FTTH) grew 12 percent sequentially in the second quarter of 2015 (2Q15) and 11 percent year-over-year, according to new research from IHS, a provider of insight, analytics and expertise. The growth is driven largely by record GPON equipment shipments in China and an increase in very-high-bit-rate DSL (VDSL) deployments.

"Service providers realize that fixed broadband services provide some of the highest margins among all their services, so investment levels to expand the speed and capabilities of fixed broadband should remain steady with a continued focus on pushing fiber deeper into access networks and closer to customers," said Jeff Heynen, research director for broadband access and pay TV at IHS.

"We are seeing record shipments of EPON and GPON equipment in China to support continued massive government initiatives to expand the FTTH footprint and service availability throughout the country," Heynen said.

More Broadband Market Highlights

  • China set a record for PON equipment revenue in 2Q15, surpassing $1 billion in a quarter for the first time ever.

  • Q2 spending on PON equipment globally was up both sequentially and on a year-over-year basis, and IHS anticipates increased spending for the full-year 2015 as more operators deploy FTTH services.

  • The 2Q15 spending environment in North America was very mixed: GPON expenditures were up 1 percent from 2Q14 but down 10 percent from 1Q15, while DSL spending plunged 18 percent from 2Q14 but grew 5 percent from 1Q15.

  • Due to the tremendous, sustained investment in China, IHS now predicts the worldwide broadband aggregation market will reach $9 billion in 2019.

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